Correlation Between Loomis Sayles and Oakmark Fund
Can any of the company-specific risk be diversified away by investing in both Loomis Sayles and Oakmark Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Loomis Sayles and Oakmark Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loomis Sayles Inflation and Oakmark Fund Institutional, you can compare the effects of market volatilities on Loomis Sayles and Oakmark Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Loomis Sayles with a short position of Oakmark Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Oakmark Fund.
Diversification Opportunities for Loomis Sayles and Oakmark Fund
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loomis and Oakmark is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Inflation and Oakmark Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Fund Institu and Loomis Sayles is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Loomis Sayles Inflation are associated (or correlated) with Oakmark Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Fund Institu has no effect on the direction of Loomis Sayles i.e., Loomis Sayles and Oakmark Fund go up and down completely randomly.
Pair Corralation between Loomis Sayles and Oakmark Fund
Assuming the 90 days horizon Loomis Sayles is expected to generate 4.4 times less return on investment than Oakmark Fund. But when comparing it to its historical volatility, Loomis Sayles Inflation is 2.82 times less risky than Oakmark Fund. It trades about 0.16 of its potential returns per unit of risk. Oakmark Fund Institutional is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 15,226 in Oakmark Fund Institutional on October 22, 2024 and sell it today you would earn a total of 500.00 from holding Oakmark Fund Institutional or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loomis Sayles Inflation vs. Oakmark Fund Institutional
Performance |
| Timeline |
| Loomis Sayles Inflation |
| Oakmark Fund Institu |
Loomis Sayles and Oakmark Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loomis Sayles and Oakmark Fund
The main advantage of trading using opposite Loomis Sayles and Oakmark Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles position performs unexpectedly, Oakmark Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oakmark Fund will offset losses from the drop in Oakmark Fund's long position.| Loomis Sayles vs. Prudential Financial Services | Loomis Sayles vs. Davis Financial Fund | Loomis Sayles vs. Financial Industries Fund | Loomis Sayles vs. Goldman Sachs Trust |
| Oakmark Fund vs. Oakhurst Short Duration | Oakmark Fund vs. Chartwell Short Duration | Oakmark Fund vs. Leader Short Term Bond | Oakmark Fund vs. Baird Short Term Bond |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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